Peace be upon you
First, we will talk about support and resistance and where it might go, and then about the ETF that was created for Solana, and then Bitcoin's acquisition, and in the end, there are two important events at the end of this month.
As you can see, guys, we are currently at a price of 165 after touching the area of 187 and dropping to a price of 125, giving you a long tail. Why didn't it continue to drop? Because support at 130 is very important. It did drop to 125, but immediately corrected and rose above, and we are currently at a price of 165. In my personal opinion, we will continue to move between 145 and 167, and we might rise to 187 by the end of this month. The first reason is that Solana is not saturated for buying; 54 is not a big number for buying saturation, which is considered from 70 and above. If it reaches 70, a slight correction may occur, but if it is above 70, we might see a long correction, and a big investor will take profits.
Regarding the ETF, most of us were surprised and expected crazy increases, especially after the acceptance of the ETF, but I want to clarify something regarding the Solana ETF; it is not like Ethereum. First, there is something called staking and something called spot; the staking on Solana is different from the spot on Ethereum, and there is a big difference between them. In short, the gateway for big investors is the spot because staking carries greater risks.
I mean, regarding the increases you saw when Trump won the elections, I don't think you will see the same. That was a historic event. Does this mean we sell? For me, it's not financial advice, but regarding Bitcoin, one might sell Solana at a price of 200 or 180 just to take profits. For long-term investors, that's another story.
There are also two important reasons that kept Solana from rising. The first is the acquisition of Bitcoin, which fell from Bitcoin's acquisition to Ethereum as you see, it reached 3000. So, Bitcoin and Ethereum need to reach acquisitions of 55 or less.
Another reason is the American policy that gave Europe and Mexico a grace period to impose tariffs, and Europe threatened to do the same, and this will make the market cautious in the first month of August. Also, don't forget that at the end of this month there is a meeting for the American Federal Reserve.
To understand better what caused this rise, this investor always anticipates decisions, so you see increases before a reduction. If a reduction happens, they will believe their expectations, and you might see slight increases followed by profit-taking. If there is a rise in interest rates, for example, and it contradicts expectations, a collective sell-off occurs, just like what happened in 2022, as far as I remember. Regards.
